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A Closer Look at Vanguard's Active Factor ETFs

Alex Bryan, CFA (alex.bryan@morningstar.com)

In February 2018, Vanguard launched a suite of promising, actively managed factor exchange-traded funds. The Vanguard Quantitative Equity Group, which oversees the new funds, has managed similar factor ETFs listed in Europe since December 2015. Each fund ranks all stocks within each bucket on the strength of their exposure to the factor of interest and targets those representing the best scoring third by market value.